K92 Mining (KNT) Q1 2025 earnings summary

Executive summary

• Achieved record quarterly revenue of $144.6 million for Q1 2025, up from $59.8 million year-over-year, driven by higher gold, copper, and silver sales and strong operational performance.

• Net earnings surged to $70.2 million, compared to $3.1 million in Q1 2024, reflecting higher commodity prices.

• Maintained a strong safety record with zero lost-time injuries for the seventh consecutive quarter and enhanced safety initiatives.

• Hosted the inaugural CARES Award Ceremony to reinforce a values-driven culture and recognized outstanding employees.

• Cash and cash equivalents increased to $181.2 million as of March 31, 2025, from $140.1 million at year-end 2024.

Financial highlights

• Revenue rose 142% year-over-year to $144.6 million; cost of sales was $34.1 million, down from $40.9 million.

• Sold 45,886 gold oz at an average price of $2,739/oz, compared to 27,996 oz at $2,016/oz in Q1 2024.

• Cash cost per gold oz decreased to $559 from $934 in Q1 2024; all-in sustaining cost at $1,010/oz.

• Operating cash flow before working capital changes reached $80.9 million, a new quarterly record.

• Capital expenditures totaled $43.8 million, primarily for expansion at Kainantu.

Outlook and guidance

• Stage 3 expansion commissioning targeted for the second half of Q2 2025, aiming to increase production to over 300,000 oz AuEq per annum.

• Stage 4 expansion planned for the second half of 2027, targeting over 400,000 oz AuEq per annum.

• Downward pressure on costs expected as economies of scale are realized post-expansion.

• Subsequent to quarter-end, purchased additional gold put options for price protection at $3,000/oz for 120,000 ounces over eight months.

• Financial position and liquidity remain strong, with full funding for ongoing projects.